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Wynn Posts Mixed Quarter

Nicholas Yulico

Wynn Resorts(WYNN Quote) reported a mixed first quarter after the market close Thursday, but the casino operator's Macau results looked much stronger than competitor Las Vegas Sands'(LVS Quote).

Wynn's overall revenue beat estimates, but earnings per share came in a penny lower than consensus expectations. The results sent Wynn shares down 4% in recent after-hours trading Thursday.

A day earlier, Las Vegas Sands earnings widely missed analyst estimates because of weak results at its Venetian Macau property, which is now the world's largest casino.

Wynn's total revenue rose 23% to $778.7 million, beating the $734.4 million analyst estimate from Thomson Financial.

Adjusted net income was $78.2 million, or 69 cents a share, compared with profit of $72.6 million, or 67 cents a share, a year earlier. Analysts expected 70 cents on this basis.

Revenue at the Wynn Macau rose 61% from a year earlier, with adjusted property EBITDA increasing 64%. The property benefited from stronger-than-expected VIP win of 3%, which is the percentage of gambling volume the casino keeps.

Wynn Macau had a 26.3% EBITDA margin in the quarter, compared to the 24.2% margin at the Sand's Venetian Macau.

Wynn's Las Vegas results were less rosy, with adjusted EBITDA falling 38% from a year earlier. Overall casino revenue dropped 28% at the property.

Las Vegas casinos continue to defy the old adage that gambling is recession-proof. This time around, the weak U.S. consumer is hurting casinos and other consumer discretionary sectors.